Samson Echenim 
Following escalated fears about the health of Nigerian banks after the Central of Nigeria (CBN) announced suspension of payment of dividend and offshore investment for banks under regulatory forbearance, the apex bank has clarified that most Nigerian commercial banks are in excellent state of health, having either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.
The CBN in a statement by the Ag. Director, Corporate Communications, Hakama Sidi-Ali , on Tuesday said the measures announced recently applied only to a limited number of banks.
The measurements “include temporary restrictions on capital distributions, such as dividends and bonuses, to support retention of internally generated funds and bolster capital adequacy,” Sidi-Ali stated, adding that “affected banks have been formally notified and remain under close supervisory engagement.”
The CBN maintained that it introduced the time-bound measures for “a small number of banks” still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic as part of its ongoing efforts to strengthen the banking system.
CBN stated: “This step is part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme announced in 2023. The programme, designed to align with Nigeria’s long-term growth ambitions, has already led to significant capital inflows and balance sheet strengthening across the sector.
“To support a smooth transition, the CBN has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms.
“Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums. These adjustments reflect a well-established supervisory process consistent with global norms.”
The CBN noted that regulators in the US, Europe, and other major markets had implemented similar transitional measures as part of post-crisis reform efforts, adding that it remained fully committed to continuous engagement with stakeholders through out this period via the Bankers’Committee, the Body of Bank CEOs, and other industry forums.
“The goal is to ensure a transparent, predictable, and collaborative regulatory environment. Nigeria’s banking sector remains fundamentally strong. These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway,” CBN emphasised.
“The CBN will continue to take all necessary actions to safeguard the sector’s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth,” CBN assured.
